REPUBLIKA.CO.ID, JAKARTA -- Indonesia's rupiah currency appreciated 134 points in interbank transactions to Rp14,511 against the US dollar on Monday, from Rp14,645 the day before.

"The third package of economic policies that will be rolled out has been one of the factors boosting the rupiah," Lukman Leong, an analyst from PT Platon Niaga Berjangka, stated.

He explained that one of the policies to be rolled out was a reduction in the subsidized fuel oil price, which is expected to increase the public's purchasing power and will in turn boost production demand.

In terms of external factors, he said a slowdown in the September data of workers in the United States had led the market players to project that the Fed rate would still be at a lower level.

"The decline in hopes for an increase in the United States' interest rate has led to an increase in the rates of currencies in developing countries," he pointed out.

Mandiri Sekuritas economist Aldian Taloputra revealed that Bank Indonesia's efforts to extend its focus on stabilizing the rupiah to include spot and futures markets had helped the domestic currency.

At the same time, he remarked that Bank Indonesia had also strengthened its management of the rupiah's liquidity through repricing and reintroduction of long-term market operation instruments to tighten the rupiah's liquidity.

"We think the policy will help to stabilize the exchange rate," he said.

The middle rate of the rupiah on Monday appreciated to Rp14,604 per US dollar, from Rp14,709 before.

Ikuti Whatsapp Channel Republika